Governance
Most Favored Nation (MFN) Election
A side-letter right allowing an LP to elect into more favorable terms granted to other LPs in the same fund.
MFN elections typically run for a defined window after final close. The GP circulates a redacted summary of all side-letter rights granted, and qualifying LPs select which terms they want to inherit, usually subject to commitment-size thresholds.
Missing the MFN window or skimming the disclosure schedule is one of the most expensive operational mistakes an LP can make. Material economic terms - fee discounts, GP commitment levels, key-person scope - are routinely available through MFN.